BUSINESS + ECONOMY

Interest rate hike could threaten the economy, according to local economist

Sep 21, 2022, 8:40 AM | Updated: Sep 23, 2022, 12:57 pm
Wall street sign pictured. Interest rate hike will affect wall street...
JOHANNES EISELE/AFP via Getty Images

SALT LAKE CITY — The Federal Reserve is expected to raise interest rates again to combat inflation.

Experts say this could slow it down but could also throw us into a recession. We’ve already had one interest rate hike and inflation is still here and they are hoping round two will go better.

Senior Economist for Zions Bank and Utah Representative Robert Spendlove says the Fed wants to beat back inflation but it could have unintended consequences.

“They’re raising these rates to try and slow the financial market but there is a greater possibility that their actions could push the U.S. economy into a recession,” said Spendlove 

Interest rate hikes usually hit housing first but credit card payments purchasing cars and even starting a business could all be more expensive.

The Fed doesn’t directly control those rates but the markets respond to any changes that it makes.

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